FAITH Manufacturing Inc. purchased a new machine on January 2, 2019, that was built to perform one function on its assembly line. Data pertaining to this machine are: Acquisition cost

FAITH Manufacturing Inc. purchased a new machine on January 2, 2019, that was built to perform one function on its assembly line. Data pertaining to this machine are: Acquisition cost P330,000 Residual value P30,000 Estimated service life: Years 5 Service hours 250,000 Production output 300,000 Required: Using each of the following methods, compute the annual depreciation rate and charge for the years ended December 31, 2019 and 2020: (1) Straight-line (2) Service hours (assume 32,000 hours for 2019 and 36,000 hours for 2020). (3) Productive-output (assume 31,000 units for 2019 and 37,000 units for 2020).

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